India, Nov. 13 -- The Union finance ministry's decision to make electric vehicles (EVs) the default choice for Union government staff cars marks a significant change in India's approach to electric mobility. Under the revised guidelines issued on November 10, EVs will be preferred when existing government vehicles are replaced; the permissible purchase price ceiling has been raised to Rs.20 lakh, compared with Rs.10 lakh for conventional vehicles.

The significance goes beyond government purchasing more electric cars. By making EVs the preferred option, rather than simply incentivising their adoption, the government is beginning to use public procurement to create demand. But the decision also raises an important question: How does India ...